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2 years ago

An example of contractionary fiscal policy would be:

2 answers:

4 0

The most recent large-scale use of contractionary fiscal policy came during President Bill Clinton's time in office (1993–2001), when he increased taxes on high-income taxpayers and decreased government spending on both defense and welfare

Zielflug [23.3K]2 years ago

3 0

Answer:

increasing taxes and lowering government spending.

Explanation:

When the government lowers taxes, consumers have more disposable income.

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In a flexible budget performance report _____.

natulia [17]

Answer:

b. the budget is adjusted to the actual activity for the period.

Explanation:

A flexible budget performance report is a comparison between actual costs and revenues, and the budgeted income and expenses at the end of a period, based on actual performance. The report shows the difference between the actual results and the estimated numbers. Management uses the report to determine if the company's results were in line with management expectations.

The performance report is prepared at the end of a financial period. It helps the management analyse any major variances between the actual performance at the estimated numbers at the beginning of a period. The report helps the management identify the companies strong areas, and the sections that need improvements.

3 0

3 years ago

Metropolis National Bank is holding 2% of its deposits as excess reserves. Assume that no banks in the economy want to maintain

iris [78.8K]

Answer:

Increase in money supply = $200,000

Explanation:

Note: The given question is incomplete, missing part is as follow:

Metropolis National Bank

Balance sheet

Assets Liabilities

Reserves $60,000 Deposits $500,000

Loans $440,000

Computation:

Excess reserve hold = 2% × Deposits

Excess reserve hold = 2% × $500,000

Excess reserve hold = $10,000

Required reserve = Reserves - Excess reserve hold

Required reserve = $60,000 - $10,000

Required reserve = $50,000

So,

Required reserve ratio = [$50,000 / $500,000]100 = 10%

Multiplier(K) = 1 / Required reserve ratio

Multiplier(K) = 1 / 10%

Multiplier(K) = 10

Total Money = Person deposit + Excess reserve hold

Total Money = $10,000 + $10,000

Total Money = $20,000

Increase in money supply = Total Money × Multiplier(K)

Increase in money supply = $20,000 × 10

Increase in money supply = $200,000

7 0

3 years ago

Suppose Kim Ping and Abdel decide to set up a joint venture. Working together, the two companies will build a new, independent m

harina [27]

Answer:

Kim Ping and Abdel will have trouble when it comes to equality in a joint venture. There is always one partner who earns more than the other.

Kim Ping and Abdel will face "conflict of interest." Every individual has his own purpose in making a profit.

Explanation:

"Join venture" refers to the merging of two parties, including their resources, in order to accomplish a project or start a new business. This means that the company profits and losses will be shared by both parties.

However, it is said that "there is no such things as equal partners." There is always a chance that one party will earn more than the other, or the other party will contribute more than the other.

There is also a possibility of "conflict of interest" in such situation. Every partner has his own beliefs and style of running a business. This will cause a conflicting interest in both parties.

These are the possible problems that Kim Ping and Abdel might encounter.

5 0

3 years ago

What is the cause of prices dropping?

Andrej [43]

Answer:

When prices drop people usually go buy it even if it is a little drop.

Explanation:

They go because of a phycological difference in price.

5 0

3 years ago

Read 2 more answers

Cleveland Company purchased $2,700 of inventory on account from Pinto Industries on March 8th. The terms were 2/15, n/45. Clevel

Gala2k [10]

Solution:

Accounts Payable $2900

Cash $2691

Inventory $209

Cleveland didn't pay during the discount period,

So the amount due is $2,700 - 450 = $2,250

Cash was charged in freight charges prior to delivery of the invoice.

4 0

3 years ago